Pharma Giants Who Got Rich Off the Opioid Crisis Are Now Desperate to Avoid Accountability
New legislation aims to ensure the executives behind the opioid crisis are held accountable — which is why health care giants are now lobbying furiously against the bill.
A new bill, written with the Sackler family in mind, would prevent company owners from using bankruptcy proceedings to escape personal liability and shield their fortunes. (K-State Research and Extension / Flickr)
Corporate health care giants are working to influence Democratic legislation that would prevent company owners from using bankruptcy proceedings to escape personal liability and shield their fortunes.
The legislation was authored to take on the Sackler family, which owns OxyContin-maker Purdue Pharma and has played a major role in the country’s opioid crisis. But the bill could have much broader implications for companies accused of wrongdoing — and that is likely why companies like drugmaker Johnson & Johnson and hospital chain Tenet Healthcare are already lobbying on it.
Purdue declared bankruptcy in 2019 to settle thousands of lawsuits related to its role in fueling the opioid epidemic. As part of the resulting bankruptcy negotiations, members of the Sackler family have offered to relinquish control of the company and pay roughly $4.2 billion to fund victim payouts in exchange for being released from any future opioid lawsuits personally directed at them. The settlement, which contains limited payouts, is set to complete in August.
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